All Forum Posts by: Joseph Graeve

Congrats Getting started @Tramaine Barnett!

I started learning about this the exact same time you are, senior year at the air force academy. I messaged you on facebook. Keep Hustling!

Awesome job @Mahad Fahieh deciding to jump in.

I am also in the Air Force stationed down in Colorado Springs. I have done a few investments in Colorado Springs and Denver and have experience balancing military and real estate. Its a pretty fun balance but it definitely is possible and when you get out of the military whether in 5 or 20 years you will have enough passive income to be well off!

Let me know if you have any questions or want to meet up when you get here or talk on the phone.

@Crystal Wilson Good job taking enough action to make the offer and get rejected. if you think of it this way. You are one rejection closer to getting your first deal under contract, so congratulations!

@Ryan Sanders just curious what type of financing are you planning on getting that would let you turn a 10cap into 83% cash on cash.

@Bill S. is right, pueblo has only been a headache for me and the two properties I have owned there. If you want to put your downpayment or cash to better use stick to the springs and Denver and find a motivated seller who you can give that cash to as a downpayment for seller financing or a lease option. Those deals are just as good of a return on investment and you'll be in a better area.

Looking forward to meeting you this Friday Ryan.

Great advice and value added @Brian Gibbons and @Bill S.

Everyone here is putting out good advice. Definitely keep looking for deals and find one you feel comfortable with but it is true that this may be a good one exactly BECAUSE he has low or no equity. if you show him that it will be such a long time before he is able to sell traditionally he might be happy to work with you doing a master lease option or a Seller financing.  I have experience in doing multiple seller financing and lease option deals, and also experience turning around a non performing apartment building. just haven't ever used a Master lease option but that does sound like an amazing idea Brian.

Let me know if I can be of any use  to you or answer any questions you have.

Okay @Samuel Hall

Ill take a crack at this. Good job at taking this action step and not being afraid of constructive criticism. it is the fastest way to learn. Also good job doing practice research on houses you know you wont bid on. Its like playing with real stocks with fake money. its a great way to practice.
first for ARV- be careful using just price/sqft for valuations. it is almost ALWAYS more accurate to use comparable property sale prices rather than their price per sqft. and getting a good idea in your head for why their sale prices are higher or lower than the neighborhood average and sort of adjusting in your head for it. make sure that comparable property has less than a 20% up or down variation in square foot, that it is a like style house ( ranch comps for a ranch, two story comps for a two story) , Make sure you are only using above sqft and above sqft as comps when you are looking for properties with similar sqft. if your house is a 2000 sqft ranch you will get a lot more for it than a 1000 sqft house with a 1000 sqft basement. this is very important.
-Repairs are kind of a crapshoot with sight unseen but should be based on sqft not just a random number. usually 20-30 dollars per square foot is more than enough to be safe with. at 30 /sqft it would come close to 40k so if you can still buy it at your 50k mark that's amazing but being high could make you lose a couple deals because you think you can only pay a certain amount.

-Taxes for the year of 2014 for this house were $1417 if we used your calculation of 6 dollars for every 1000 it would be closer to 2200 which is not that far off but usually it is public records what the taxes are for any specific house each year.

-how are you calculating your selling transaction costs. they seem a little low unless you are a realtor and listing yourself.  even then you should still expect to pay 3% to a buyers agent. If you are not listing yourself expect to pay 6% unless you can find a realtor to list for you at 2% which is common for investors who give a lot of business to realtors.

That should be enough to get you started with learning more or at least asking different questions. Let me know if you have any more questions. Keep hustling!

Hey @Cynthia Ganga

I respect you immensely for having that great failure and still getting back up to invest again and being fearless.

I have bought 20 properties all around Colorado specifically Denver, Colorado Springs, and Pueblo over the last year. I have a few really good contractors and know of quite a few hard money lenders in this area.

feel free to connect with me and I'd be happy to share my resources.

You will go far in this business by reaching out for help and having the courage to persist after failure. Great job and good luck.

I have a great general contractor in Colorado Springs. Mark Schoning. every single conversation we have he talks about his core values and mentions his integrity being his biggest asset in his own words. I trust him immensely with quality and pricing. Message me if you would like his number.

Awesome goal @Amar Amarnath

You will go a long way combining that savings rate with the amazing Returns of real estate investing.

Saving like @Dawn Brenengen said might be a great strategy. I would rather see you get into a 20k house ( or a 80k house with 25% downpayment) every two months rather than a 10k house every month. and Im sure @Robert Herrera has houses in both price ranges. But there is definitely a lot of possibility for you with 10k.

If you wanted to take a more active route, I once used 10k to make a profit of 45k over a year. It involves a sandwich lease option. and I also used an investors money to get that 10k and gave that investor a great return on their money. Everybody wins.

Let me know if you would like some good book recommendations for where to start.

Congrats on getting that deal under contract so quickly @Matt M. Its a great feeling isn't it!